![]() These plans cap your monthly debt payments at a percentage of your monthly income. If you feel you might not be able to keep up with your monthly student loan repayments or have a large outstanding debt, IDR plans are best suited for you. Remember to complete your FAFSA form every year. When you opt in, your financial aid department will apply the funding to the amount you owe your school.Īny remaining balance will be sent to you for miscellaneous college expenses. If selected, review the offer terms and costs before accepting. Select “Student” as the applicable role when filling out the FAFSA form.Īfter completing the form, send it to your college for review. The FAFSA 2024-25 form submission deadline is June 30, 2025.Ĭlick “Start New Form” and log in to your newly-created account on the next page. If you are a US citizen, a legal permanent resident, or an individual with an Arrival-Departure Record from US Citizenship and Immigration Services showing particular designations, you can apply for federal student aid. Most colleges and universities use the FAFSA application to determine your eligibility for federal, state, and college-financed student support. The application for federal financial aid is the first step to acquiring student loans. The interest rate for the 2023-2024 academic year is 7.05%. Being unsubsidized, interest on the principal amount will accrue right from the moment the loan is approved. ![]() If you are ineligible for a subsidized loan, the US government offers direct unsubsidized federal student loans, which are available to undergrads, graduates, and professional students irrespective of their financial requirements. Remember, interest will rack up if you drop below half-time status. ![]() Since it is subsidized, the US government will take care of the interest accrued when you are in school. Know that the amount sanctioned will vary based on your year in school with a ceiling of $23,000. The loan application also checks if you are financially independent from your parents. This option can be chosen by undergrads who require financial support. There are two different types of Stafford loans: Direct Subsidized Loans The interest rate for the 2023-24 academic year was fixed at 5.50%. Stafford loans are popular as they offer undergrad students low origination fees and interest rates. The spreadsheet paints a vivid picture of all your debt details in one place, making it super easy to track progress throughout your loan repayment journey. You can play around with the numbers to find a balance between your budget and when you want to go debt-free. Let’s say you had $2,000 and used it to make a lump-sum payment alongside contributing an extra $500 from a side hustle each month on top of the minimums.Īs you can see, an extra $500 monthly and the lump sum amount drastically lowers the debt repayment time from 4.4 years to 1.4 years. When you click the “update” icon, the sheet will visualize a breakdown of how your debt shrinks each month and the estimated time to go debt-free for each loan. List all debt details on the spreadsheet, including loan type, outstanding balance, minimum payments, and rates, as shown in the screenshot below. It is intuitive, fast, and specifically designed for users without any prior experience in managing finances.Īfter downloading the spreadsheet, follow these steps: To estimate an early payoff date, try the formulas above with a higher payment amount and repeat the steps to calculate the payoff date for the new payment amount.Users love the simplicity of the debt snowball spreadsheet. The estimated payoff date is slightly less than the inverse of the increase in payment. To calculate the monthly payment on a loan, use a loan payment calculator. Therefore, the principal payment will be $300. For the first month in our example, the monthly payment is $500 and the interest payment is $200. The principal payment is just the monthly payment minus the interest payment. You can use an amortization calculator to see the principal and interest payments for each month. The amortization schedule shows that this loan will be paid off in 6 years and 5 months. Repeat this step each month as the remaining principal balance gets lower. You can find this by multiplying $30,000 by 0.6667%. In this example, the first interest payment will be $200. To find the periodic interest rate, divide the annual interest rate of 8% by 12, which equals 0.6667%. Let’s assume you have a student loan of $30,000 which will be paid at 8% annual interest with a monthly payment of $500. Let’s try an example using the calculator. Amortization schedule for a $40,000.00 loan with a 6.25% interest rate and a 75-month term.
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